The world's economic growth is on a knife edge because of booming inequality

The Tsisvov Funambulists
Troupe perform during the 33rd International Circus Festival of
Monte Carlo on January 15, 2009 in Monte Carlo,
Monaco.Getty

Britain's "jobs miracle" may have pushed the
employment rate to a record high but the Organisation for
Economic Co-operation and Development (OECD) just warned that the
boom in people working for themselves and those in temporary work
is actually creating a massive income gap that could threaten the
economic recovery.

“We have reached a tipping point. Inequality in OECD countries is
at its highest since records began,” said OECD Secretary-General
Angel Gurría, launching the report in Paris with Marianne
Thyssen, European Commissioner for Employment, Social Affairs,
Skills and Labour Mobility. “The evidence shows that high
inequality is bad for growth. The case for policy action is as
much economic as social. By not addressing inequality,
governments are cutting into the social fabric of their countries
and hurting their long-term economic growth."

“Non-standard workers are worse off in terms of many aspects of
job quality," said the OECD in the report. "They tend to receive
less training and, in addition, those on temporary contracts have
more job strain and have less job security than workers in
standard jobs. Earnings levels are also lower in terms of annual
and hourly wages.

“In the six years since the global economic crisis, standard jobs
were destroyed while part-time employment continued to increase."

Apparently, income inequality is the worst in Chile, Mexico, Turkey, the United States
and Israel while Denmark, Slovenia, Slovak Republic and Norway
demonstrated a smaller gap between the richest and poorest
workers.

The OECD said that in order
to reduce
inequality and boost inclusive growth, "governments should:
promote gender equality in employment; broaden access to better
jobs; and encourage greater investment in education and skills
throughout working life."